2015 Report details for project: Submarine Enterprise Performance Programme

Project name: Submarine Enterprise Performance Programme - there are 3 reports for this project: 2013, 2014, 2015
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: Transformation - see all reports for this category
Description: SEPP is a business transformation programme in which the three monopoly tier 1 suppliers within the Submarine Enterprise (BAE Systems, Babcock and Rolls-Royce) work together collaboratively with the MOD. The scope of SEPP covers the entire Submarine Enterprise, including the design, build and in-service support of submarines; it does not cover the Strategic Weapons programme, including the Atomic Weapons Establishment (AWE), which is being reviewed under a separate programme within the Submarine Operating Centre (SM OC). SEPP has three strategic objectives: Performance Up - working with industry to improve performance on new and existing submarines and strengthen the linkage between customer requirements and Operating Centre outputs; Cost Out - realising significant savings through the rationalisation of facilities, adopting an holistic approach to design, build and support and exploiting buying power; and Sustainability In - protecting the UK’s ability to retain and sustain the capability to design, build and support nuclear submarines as identified in the Defence Industrial Strategy and to meet the commitment to build a successor for Vanguard class submarines.
DCA (RAG): Amber
DCA text: The main focus has been on identification and realisation of benefits and the achievement of the delivery of the Foundation Contracts (FC). These embed the commitment from industry to their benefit targets. The Rolls-Royce FC was signed in February 2013, the BAES FC was signed in July 2013 and Babcock's FC equivalent, the Maritime Support Delivery Framework (MSDF), was signed in September 2014. There is increased confidence in achieving the £900m SEPP Planning Round 2011 (PR11) target with SEPP having realised a greater savings profile than initially planned.
Start date: 2010-05-31
End date: 2014-10-30
Schedule text: The programme is on track with benefit identification and delivery underway. The signing of the Foundation Contracts has been achieved (Rolls-Royce in February 2013, BAES in July 2013 and Babcock's MSDF in September 2014). With all Foundation Contracts signed, SEPP is preparing for the Graduation process from the Defence Major Programmes Portfolio which is scheduled for Spring 2015.
Baseline: £0.28m
Forecast: £0.23m
Variance: -17.90%
Variance text: The cost variance in 2014/15 is attributable to a reduction in the need for technical support for cost modelling and preparation of Foundation Contracts following signature of the BAES and Rolls-Royce contracts and support for MSDF being provided by another delivery team.
Whole Life Cost: £15.73m
WLCost text: The following are included in the WLC for SEPP: · Supporting the preparation and signing of the 3 Foundation Contracts; ·Insurance; ·Support contracts.
Sourcefile: IPA_2015.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.